Iran has signed a preliminary deal with Germany’s Siemens to manufacture equipment for the country’s electricity industry, Ventures Onsite informed.

The Iran Electricity Industry Syndicate’s Member, Arsalan Fathipour, estimated that the agreement with Siemens will be finalized into a contract within two months, Mehr News Agency reported. “Products from the joint venture, such as transformers, can be exported besides being used for domestic consumption,” he added.

The official went on to underlined that collaboration with Siemens was aimed at accelerating production, reducing costs and expanding the export of electricity equipment.

The plant will be built in Parand, a town about 65km southwest of Tehran, said the official recalling that Iran was a producer and exporter of various transformers in the electricity industry in the Middle East.